Paymate Submits Case to ACCC

Media Release: 07 May 2008

Australian online payments provider Paymate today lodged its submission to the Australian Competition and Consumer Commission (ACCC), in response to an invitation regarding eBay's Notification for Exclusive Dealing.  The company has claimed it has a risk-managed service comparable to that of PayPal, proposed by eBay to become the exclusive payment option on eBay Australia.

Paymate is a private company incorporated in New South Wales with headquarters in Sydney. Paymate provides secure, reliable and innovative internet-based payment and trading services to individuals and businesses in Australia and overseas. Paymate’s services enable its clients to make and receive payments via credit card and bank account.

Dilip Rao, Managing Director of Paymate, said, "Paymate is in a unique position to comment on eBay’s notification. When Paymate commenced operations on 30 October 2001 it was launched on eBay with eBay’s full support as an ‘eBay recommended payment service’.

"We disagree with eBay’s conclusion and submit that eBay's notified conduct will substantially lessen competition by excluding payment providers other than PayPal.  Paymate does not consider that the claimed public benefits arising from a more secure eBay platform will necessarily accrue. Buyers and sellers will suffer from the lack of freedom of choice and the benefits of competition."

Paymate contends that it offers a comparable service to that offered by PayPal. Paymate has a proven record of providing a trustworthy and secure/safe service. Paymate opposes eBay’s notified conduct on the basis that it is anti-competitive and is detrimental to Paymate’s business.

The company has already challenged eBay to offer it equal access to eBay members so it can match PayPal's Buyer and Seller Protection Programs.

Paymate's submissions to the ACCC include confidential materials.  Click here for the public version of the submission.